Pre-nuptial agreement: Do I Need One?

If you are getting married, you will likely already be planning for your big day and making decisions regarding the guest list and venue, amongst many other items, but if you haven’t yet thought about your pre-nuptial agreement, then you currently have not thought about how you will protect your and your partner’s interests.

What is a pre-nuptial agreement?

Pre-nuptial agreements are being made by more and more engaged couples who are keen to protect their individual assets and interests. Many couples say they want a pre-nuptial agreement to give them peace of mind, confident that important financial decisions have already been made should the marriage breakdown in the future.

Although no one wants to enter into a marriage thinking it may fail, planning for all eventualities is recommended, particularly in today’s world and especially if there are children from the current or a previous relationship, a property, monies borrowed from relatives or inheritance involved.

A pre-nuptial agreement is essentially a formal legal agreement outlining all belongings of each party – including money, assets and property, explaining how these will be divided in the event of the marriage breaking down. Many people do not realise that as well as outlining how assets and money will be divided, pre-nuptial agreements can also divide debt and liabilities in the event you and your partner share debt, or one of you has personal debt.

Money is an incredibly emotive subject and therefore by outlining from before the marriage begins how assets would be divided, it can provide peace of mind knowing a clear agreement has been defined from the outset.

Why would a pre-nuptial agreement be beneficial?

The end of a relationship can be traumatic for all parties involved and having an agreement in place that clearly shows how any assets would be divided can make the process a little less stressful.

In particular there are a number of situations whereby a pre-nuptial agreement should be considered, such as where you or your partner:

• Have any children from a previous relationship and want to allocate assets to them or to protect their inheritance.
• Own assets would be hard to split equally between you both.
• Have received or are likely to receive inheritance.
• Are a stay-at-home parent.
• Have significant personal savings or assets, including property, pensions, stocks and shares, etc.
• Own a property in sole name.
• Own a business.
• Have any outstanding debts including mortgages, personal loans, car finance, etc, credit card balances or overdrafts.

Without a pre-nuptial agreement in place the typical starting point for divorce proceedings is the split of assets on a 50/50 basis which may not be suitable should you be contributing more to the marriage, for example by providing or paying for the marital home. A pre-nuptial agreement can avoid this happening.

What needs to be included within a pre-nuptial agreement?

Every pre-nuptial agreement is tailored to the individual couple by outlining exactly what assets you each have and how these should be processed in the event of divorce. Your pre-nuptal agreement would also deal with how liabilities and debts are dealt with between you both. It therefore needs to be completed by a solicitor with experience in writing pre-nuptial agreements and family law.

When should a pre-nuptial agreement be made?

In order to maximise the chances that the Court will use the information from a pre-nuptial agreement within any divorce proceedings the agreement must to be entered into at least 28 days prior to the marriage. Both parties need to agree to and sign the documentation voluntarily.

Pre-nuptial agreements are not produced in a day and so if you would like to discuss a pre-nuptial agreement it is advised that you contact Holmes & Hills Solicitors two months before your wedding day.

Getting a pre-nuptial agreement:

Holmes & Hills Solicitors provide pre-nuptial agreements for a single fixed-fee. This includes giving you expert advice and guidance on what your agreement can and should include, given your and your partner’s personal circumstances and interests.

If you would like to know more about pre-nuptial agreements or are considering one as part of your wedding planning, please contact Lauren Howard at Holmes & Hills Solicitors on 01376 320456 (Essex) or 01787 275275 (Suffolk).

Holmes & Hills has offices in Braintree, Sudbury, Halstead, Tiptree and Coggeshall. You can get advice from and meet with one of our specialist Family Law solicitors at any one of our offices.

Pre-nuptial agreements are not legally binding but a Court will take into consideration an agreement entered into voluntarily by individuals if it is considered reasonable and fair